LendingTree Ranks Down Payment Affordability by State

Tendayi Kapfidze

Tendayi Kapfidze is Chief Economist at LendingTree. He leads the company’s analysis of the U.S. economy with a focus on housing and mortgage market trends. Tendayi utilizes data analysis to be a resource for both consumers and...

New LendingTree study ranks the states with the highest and lowest average down payment and down payment percentages for conventional 30-year, fixed-rate mortgages.

The average down payment on a U.S. home fell in the third quarter, though down payments as a percentage of purchase price remained about the same. Every quarter, LendingTree, the nation’s leading online loan marketplace, compares the average down payment percentages and amounts for conventional 30-year, fixed-rate purchase mortgage offers across the country. By finding these averages, we hope to give potential homebuyers an idea of what they can expect to put down when buying a home.

Key findings

Average down payment percentages for conventional 30-year, fixed-rate purchase mortgage offers stayed about the same from the second quarter to the third quarter, rising 0.03 percentage points (18.02% to 18.05%).

At the same time, average down payment amounts decreased nearly 10% in the third quarter, falling from $52,480 to $47,265.

The average loan amount offered to potential homebuyers fell around $28,000 from $285,903 in Q2 to $257,749 in Q3.

What does this mean for you?

If you’re looking to buy a home, sell the one you’re currently in or just stay where you are, these findings could have an impact on you.

If you are buying a home
As LendingTree’s data show, the average down payment for a home is decreasing and loan amounts fell. This is good news if you are looking to buy, as it means that you will need to save less money for a down payment. If high down payments have deterred you from buying a home in the past, now might be a good time to reconsider your options.

If you are selling a home
Recent data shows that home prices are not growing as fast as they have been over the past few years. As a result, if you are looking to sell your home, now might be a good time to do it. Waiting too long to sell could end up costing you, especially if this trend continues and home prices start to fall.

If you are staying in your current home
Even if you are not currently in the market to buy or sell a home, this data could still have impact on you, as down payments are a function of home prices. If home prices begin to fall, then you might want to reconsider refinancing or taking out a home equity loan. If you are planning on using your home as a retirement asset, then knowing its value will help you better plan for your future.

The lowest average down payments, by percentage

Alaska
Average down payment percentage: 15.41%
Average offered down payment: $36,476
Average offered loan amount: $236,643

West Virginia
Average down payment percentage: 15.44%
Average offered down payment: $21,415
Average offered loan amount: $138,696

Mississippi
Average down payment percentage: 15.78%
Average offered down payment: $22,964
Average offered loan amount: $145,523

The lowest average down payments, by amount

West Virginia
Average down payment percentage: 15.44%
Average offered down payment: $21,415
Average offered loan amount: $138,696

Arkansas
Average down payment percentage: 15.90%
Average offered down payment: $21,707
Average offered loan amount: $136,505

South Dakota
Average down payment percentage: 18.38%
Average offered down payment: $22,149
Average offered loan amount: $120,529

The highest average down payments, by percentage

California
Average down payment percentage: 21.44%
Average offered down payment: $97,809
Average offered loan amount: $454,146

Hawaii
Average down payment percentage: 21.32%
Average offered down payment: $69,923
Average offered loan amount: $328,046

Delaware
Average down payment percentage: 21.29%
Average offered down payment: $51,678
Average offered loan amount: $242,735

The highest average down payments, by amount

California:
Average down payment percentage: 22.44%
Average offered down payment: $97,809
Average offered loan amount: $456,146

New York
Average down payment percentage: 19.85%
Average offered down payment: $90,318
Average offered loan amount: $454,968

Methodology

The report covers conventional 30-year fixed mortgages offers that borrowers received on LendingTree’s platform in Q3 2018. The down payment is the total dollar amount contributed to the purchase price excluding the mortgage. The down payment percentage is the proportion of this dollar amount to the total purchase price.